Conduct your own SWOT analysis
A BNET Professional Development Tool
Version 2.0
January 29, 2007
Competitive Analysis
Who are my competitors?
How do I analyze them?
SWOT Porter’s Five Forces
Strategic Group Maps
PEST analysis
SWOT analysis and SWOT matrix
A SWOT analysis helps you match your
company’s resources and capabilities to
threats and opportunities in the
competitive environment.
SWOT analysis can be very subjective,
but adding weighting and criteria to each
factor increases the validity of the
analysis. Also completing the SWOT
matrix can help you pick the best
strategy to implement.
Strengths
Weaknesses
Opportunities
StrengthOpportunity
strategies
WeaknessOpportunity
strategies
Threats
Strength-Threat
strategies
WeaknessThreat
strategies
Competitive Analysis
Who are my competitors?
How do I analyze them?
SWOT Porter’s Five Forces
Strategic Group Maps
PEST analysis
SWOT analysis and SWOT matrix
A SWOT analysis helps you match your
company’s resources and capabilities to
threats and opportunities in the
competitive environment.
SWOT analysis can be very subjective,
but adding weighting and criteria to each
factor increases the validity of the
analysis. Also completing the SWOT
matrix can help you pick the best
strategy to implement.
Strengths
Weaknesses
Opportunities
StrengthOpportunity
strategies
WeaknessOpportunity
strategies
Threats
Strength-Threat
strategies
WeaknessThreat
strategies
Why use SWOT analysis?
Methodically and honestly assessing your company’s strengths and
weaknesses as well as the opportunities and threats it faces gives you a
rare opportunity for objective analysis. The SWOT technique:
is easy to use
combines quantitative and qualitative analysis
encourages interdepartmental collaboration
To make sure your analysis is put to good use, include these before and after
steps in your analysis process:
Set an objective for the analysis
Set aside adequate time for research and information-gathering
Evaluate the results of your analysis against your original objective
This competitive analysis tool guides you through the SWOT technique and will
help you create your own analysis that can help you set a strategic plan or
present new ideas to your team.
Competitive Analysis
Who are my competitors?
How do I analyze them?
SWOT Porter’s Five Forces
Strategic Group Maps
PEST analysis
SWOT analysis and SWOT matrix
A SWOT analysis helps you match your
company’s resources and capabilities to
threats and opportunities in the
competitive environment.
SWOT analysis can be very subjective,
but adding weighting and criteria to each
factor increases the validity of the
analysis. Also completing the SWOT
matrix can help you pick the best
strategy to implement.
Strengths
Weaknesses
Opportunities
StrengthOpportunity
strategies
WeaknessOpportunity
strategies
Threats
Strength-Threat
strategies
WeaknessThreat
strategies
Why use SWOT analysis?
Methodically and honestly assessing your company’s strengths and
weaknesses as well as the opportunities and threats it faces gives you a
rare opportunity for objective analysis. The SWOT technique:
is easy to use
combines quantitative and qualitative analysis
encourages interdepartmental collaboration
To make sure your analysis is put to good use, include these before and after
steps in your analysis process:
Set an objective for the analysis
Set aside adequate time for research and information-gathering
Evaluate the results of your analysis against your original objective
This competitive analysis tool guides you through the SWOT technique and will
help you create your own analysis that can help you set a strategic plan or
present new ideas to your team.
Conducting a SWOT analysis
There are eight steps required to complete a SWOT analysis and create a SWOT matrix (also
known as a TOWS matrix).
Pixar Animation
Studios
1.
List external opportunities
2.
List external threats.
3.
List internal strengths.
4.
List internal weaknesses.
5.
Match internal strengths with external opportunities and list the resulting
Strengths-Opportunities strategies in the matrix chart.
6.
Match internal weaknesses with external opportunities and list
the resulting Weaknesses-Opportunities strategies.
7.
Match internal strengths with external threats and list
the resulting Strengths-Threats Strategies.
8.
Match internal weaknesses with external threats and record the resulting Weaknesses-Threats
Strategies.
To illustrate the SWOT
analysis technique,
we’ve used Pixar of
Finding Nemo fame as a
sample case. As you
learn about SWOT
analysis, you’ll see what
results Pixar might have
if it used the same
technique.
At this point in the process, you’ll have a significant list of potential strategies. You’ll need to
weigh the impact of the various factors in your analysis and select the most feasible strategy
to implement. Ideally, you’ll select a SO strategy, but often you’ll need to implement one of
the other three types of strategies to overcome a weakness or address a threat before being
in a position to implement a S-O strategy.
Assessing your strengths
The first two elements of your analysis focus on internal capabilities. Strengths can come from many
sources, including your team members, your product line, your bank account, your production
process, your patents, or your market share. List your strengths in these and any other relevant
categories.
Products
•
•
Pixar’s strengths
Excellent use of technology
•
Strong brand
•
Talented team
People
•
•
•
•
Performance
•
•
•
•
Great track record
Assessing your weaknesses
Focus on the root causes of long-standing problems, not individual mistakes or failures. List your
weaknesses in these and any other relevant areas:
Products
•
•
•
•
•
People
Pixar’s
weaknesses
Product line is narrowly
defined
•
Production time is long
•
Digital piracy can cut
into profits
•
•
Performance
•
•
•
Assessing your opportunities
This part of your analysis reviews external forces, including socioeconomic, political, environmental and
demographic changes that could effect your company. Consider these questions when reviewing
your opportunities.
Products
•
•
•
•
People
•
•
•
•
Performance
•
•
•
•
Pixar’s
opportunities
Develop online products
to build on existing
technology strengths
Continue to use
technology strength to
develop and sell
animation software
Develop games to build
on strengths of
characters
Assessing your threats
Threats can be hard to define, so this portion of the analysis can be the most difficult and the most
illuminating, both in terms of pointing out what needs to be done, and in putting problems into
perspective.
Products
•
•
•
•
People
•
•
•
•
Performance
•
•
•
•
Pixar’s threats
Digital piracy may
threaten profits
One product failure
could be a serious set
back
Other film companies
may target the animated
film market
Use the SWOT Matrix to pick a strategy
At this point in the analysis, you should have a list of strengths, weaknesses, threats and
opportunities. To develop strategies based on this list, use the SWOT matrix. This
matrix lists all the information you’ve gathered to this point and helps you to match up
internal strengths and weaknesses with external threats and opportunities and develop
a plan for addressing the strongest forces.
Four strategy types from the SWOT Matrix
S-O strategies pursue opportunities that match the company’s strengths. These are the
best strategies to employ, but many firms are not in a position to do so. Companies will
generally pursue one or several of the other three strategies first to be able to apply SO strategies.
W-O strategies overcome weaknesses to pursue opportunities.
S-T strategies identify ways that the firm can use its strengths to reduce its vulnerability to
external threats.
W-T strategies establish a defensive plan to prevent the firm’s weaknesses from making it
susceptible to external threats.
SWOT Matrix
Opportunities
Strengths
Weaknesses
List 4-5 internal strengths here
List 4-5 internal weaknesses here
S-O strategies
W-O strategies
S-T strategies
W-T strategies
List 4-5 external opportunities
here
Threats
List 4-5 external threats here
Examples of each strategy type
Strength-Opportunity Strategies
Strength-Threat Strategies
Expand globally
Diversify
Increase sales staff
Acquire competitor
Increase advertising
Liquidate
Develop new products
Expand locally
Diversify
Re-engineer
Weakness-Opportunity Strategies
Weakness-Threat Strategies
Joint venture
Divest
Acquire competitor
Increase promotion
Expand nationally
Retrench
Backward integration
Restructure
Forward integration
Downsize
Learn more about SWOT analysis
Use these BNET and other online resources to improve your understanding of how
to use this technique.
SWOT Analysis
This article explains SWOT analysis and details the changes that SWOT analysis could make
in a company’s competitive, socio-cultural, political and legal strategies.
SWOT Analysis
This short article explains how to conduct a SWOT analysis and includes some of the
technique’s limitations.
Analyzing Your Business's Strengths, Weaknesses, Opportunities, and Threats
This document explains how to build a matrix and includes several examples.
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